Farnsworth Drycleaners has capacity to clean up to 7,500 garments per month. Requirements 1. Complete the schedule below for the three volumes shown. 2. Why does the average cost per garment change? 3. Suppose the owner, Dustin Farnsworth, erroneously uses the average cost per unit at full capacity to predict total costs at a volume of 4,500 garments. Would he overestimate or underestimate his total costs? By how much? Requirement 1. Complete the following schedule for the three volumes shown. (Round all unit costs to the nearest cent and all total costs to the nearest whole dollar.) 6,000 7,500 Garments Garments Total variable costs Total fixed costs 4,500 Garments 4,200

Farnsworth Drycleaners has capacity to clean up to 7,500 garments per month. Requirements 1. Complete the schedule below for the three volumes shown. 2. Why does the average cost per garment change? 3. Suppose the owner, Dustin Farnsworth, erroneously uses the average cost per unit at full capacity to predict total costs at a volume of 4,500 garments. Would he overestimate or underestimate his total costs? By how much? Requirement 1. Complete the following schedule for the three volumes shown. (Round all unit costs to the nearest cent and all total costs to the nearest whole dollar.) 6,000 7,500 Garments Garments Total variable costs Total fixed costs 4,500 Garments 4,200

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 4EA: The following information is from Daves Sporting Goods. Daves is a Midwest sporting goods store with...

See similar textbooks

Similar questions

Petrov Drycleaners has capacity to clean up to 6,000 garments per month. Requirements 1. Complete the schedule below for the three volumes shown. 2. Why does the average cost per garment change? 3. Suppose the owner, Dennis Petrov, erroneously uses the average cost per unit at full capacity to predict total costs at a volume of 3,000 garments. Would he overestimate or underestimate his total costs? By how much? ♥ Requirement 1. Complete the following schedule for the three volumes shown. (Round all unit costs to the nearest cent and all total costs to the nearest whole dollar.) Total variable costs Total fixed costs Total operating costs Variable cost per garment Fixed cost per garment Average cost per garment 3,000 Garments $ $ 4,500 Garments 3,600 2.00 6,000 Garments
Perreth Drycleaners has capacity to clean up to 5,000 garments per month. Requirements 1. Complete the schedule below for the three volumes shown. 2. Why does the average cost per garment change? 3. Suppose the owner, David Perreth, erroneously uses the average cost per unit at full capacity to predict total costs at a volume of 2,000 garments. Would he overestimate or underestimate his total costs? By how much? Requirement 1. Complete the following schedule for the three volumes shown. (Round all unit costs to the nearest cent and all total costs to the nearest whole dollar.) 2,000 3,500 5,000 Garments Garments Garments Total variable costs Total fixed costs Total operating costs Variable cost per garment Fixed cost per garment Average cost per garment $ 1,750 2.00
B1.
Pound Drycleaners has capacity to clean up to 8,000 garments per month. Requirements 1. Complete the schedule below for the three volumes shown. 2. Why does the average cost per garment change? 3. Suppose the owner, David Pound, erroneously uses the average cost per unit at full capacity to predict total costs at a volume of 5,000 garments. Would he overestimate or underestimate his total costs? By how much? Requirement 1. Complete the following schedule for the three volumes shown. (Round all unit costs to the nearest cent and all total costs to the nearest whole dollar.) 5,000 Garments 6,500 8,000 Garments Garments Total variable costs $ 5,200 Total fixed costs Total operating costs Variable cost per garment Fixed cost per garment Average cost per garment $ 2.40
Pound Drycleaners has capacity to clean up to 5,000 garments per month. Requirements 1. Complete the schedule below for the three volumes shown. 2. Why does the average cost per garment change? 3. Suppose the owner, Dustin Pound, erroneously uses the average cost per unit at full capacity to predict total costs at a volume of 2,000 garments. Would he overestimate or underestimate his total costs? By how much? Requirement 1. Complete the following schedule for the three volumes shown. (Round all unit costs to the nearest cent and all total costs to the nearest whole dollar.) 2,000 3,500 5,000 Garments Garments Garments Total variable costs $ 2,450 Total fixed costs Total operating costs Variable cost per garment 2.00 Fixed cost per garment Average cost per garment %24
Price Drycleaners has capacity to clean up to 5,000 garments per month. Requirements 1. Complete the schedule below for the three volumes shown. 2. Why does the average cost per garment change? 3. Suppose the owner, Dale Price, erroneously uses the average cost per unit at full capacity to predict total costs at a volume of 2,000 garments. Would he overestimate or underestimate his total costs? By how much? Requirement 1. Complete the following schedule for the three volumes shown. (Round all unit costs to the nearest cent and all total costs to the nearest whole dollar.) 3,500 Garments Total variable costs Total fixed costs Total operating costs Variable cost per garment Fixed cost per garment Average cost per garment 2,000 Garments $ 2,450 1.80 5,000 Garments
Pillard Drycleaners has capacity to clean up to ss attached
Pietro expects to produce 50,000 units and sell 49,300 units. Beginning inventory of finished goods is 42,500, and ending inventory of finished goods is expected to be 34,000. Required: 1. Prepare a statement of cost of goods sold in good form. 2. What if the beginning inventory of finished goods decreased by 5,000? What would be the effect on the cost of goods sold?
H6. Show All step by step calculation
Ethan Manufacturing Incorporated produces floor mats for automobiles. The owner, Joseph Ethan, has asked you to assist in estimating maintenance costs. Together, you and Joseph determine that the single best cost driver for maintenance costs is machine hours. These data are from the previous fiscal year for maintenance costs and machine hours: 1. What is the cost equation for maintenance costs using the high-low method? 2. Calculate the mean absolute percentage error (MAPE) for the cost equation you developed in requirement 1. Month Maintenance Costs Machine Hours 1 $ 2,660 1,750 2 2,820 1,830 3 2,970 1,910 4 3,080 1,930 5 3,160 1,960 6 3,130 1,940 7 3,070 1,920 8 2,910 1,900 9 2,680 1,760 10 2,280 1,160 11 2,290 1,360 12 2,510 1,650
1) Your delivery business uses a rental truck, In an attempt to estimate future truck rental costs you have collected the following information: Month Miles driven Rental cost of truck January February 600 $585 620 588 March 580 574 April 640 591 May 700 610 June 680 598 If you drive the truck 640 miles in July, what should the total rental cost be? Use the high/low method. Do you think this is a decent estimate of what the cost will be? Why?
This cost data from Hickory Furniture is for the year 2017. Using the high-low method, express the companys utility costs as an equation where X represents number of tables produced. Predict the utility costs if 800 tables are produced. Predict the utility costs if 600 tables are produced. Using Excel, create a scatter graph of the cost data and explain the relationship between number of tables produced and utility expenses.